INDIRA RESTAURANT Vs. ADDL ENTERTAINMENT TAX OFFICER

JUDGEMENT

(1.) The Petitioner is a restaurant (represented by its partner) on Asaf Ali Road, New Delhi. Apart from serving food items, the Petitioner holds floor shows in accordance with the terms of a license granted to it by the Delhi Police.

(2.) The Petitioner says that it charges its customers Rs.112/- as a cover charge/admission charge for watching the floor show. This amount is payable on entry into the restaurant by purchasing an admission ticket. Out of the amount payable by a customer, Rs.48/- is adjusted towards entertainment tax, which is deposited with the Respondents. The Petitioner's customers pay separately for the food and drinks consumed. The Petitioner says that it maintains regular books of account and pays the necessary sales tax and entertainment tax.

(3.) The Petitioner alleges that one day some persons posing as officers of the entertainment tax department wanted free entry to witness the floor show. The Manager of the restaurant asked them to produce their identity card, which they could not. Consequently, they were denied entry into the restaurant. The result of this action on behalf of the Petitioner was that a show cause notice dated 25th September 1997 was issued to the Petitioner by the entertainment tax department.